Bikaji Foods shares tumble 13% on margin worries; eyes on Q3 earnings call
Bikaji Foods Stock Price: Bikaji Foods International would be hosting analyst call later today at 2 pm, where all eyes would be on the management commentary on the impact of palm oil inflation on margins.
- Feb 7, 2025,
- Updated Feb 7, 2025 11:03 AM IST
Shares of India’s third largest ethnic snacks manufacturer Bikaji Foods International tumbled 13 per cent in Friday's trade, as the company's Q3 margins came in below consensus estimates on high palm oil cost, even as revenue largely met analyst estimates.
The second-fastest growing company in the Indian organised snacks would be hosting an analyst call later today at 2 pm, where all eyes would be on the commentary on the impact of palm oil inflation on the company’s margins and whether any price hike is likely going ahead.
The stock fell 12.86 per cent to hit a low of Rs 638.10. The stock is down 14.36 per cent in 2025 so far.
Investors would keenly follow commentary on Bhujiya performance in comparison to other snacking options. They may seek know the reasons behind a lower market share in Bihar compared to other core states such as Rajasthan and Assam.
Nuvama said Bikaji Foods' Q3 revenue grew 14.5 per cent YoY and was marginally ahead of its estimates. Ebitda fell 26 per cent YoY and was below its and consensus estimates.
Overall volumes for Bikaji Foods grew 3 per cent YoY. Traditional snacks delivered a growth of 10.5 per cent YoY. Western snack sales grew mere 0.8 per cent YoY in Q3FY25 while packaged sweets grew 11.2 per cent YoY. Gross margins of 29 per cent declined 257 basis points YoY while EBITDA margins fell 425 basis points to 7.8 per cent.
Nuvama said it will revisit its estimates and target price post the earnings call. For now it maintained its ‘BUY’ on the stock.
Deepak Agarwal, Managing Director at Bikaji Foods International said his company was facing significant inflationary pressures and weak demand sentiment in the market. The
"Traditional Snacks category has been a major contributor, accounting for 62 per cent of our total revenue, followed by the Packaged Sweets category, which contributed 18 per cent. Regarding commodity prices, we continue to experience year-on-year inflation in key inputs such as edible oil, potatoes, packaging material and other essential commodities," Agarwal said.
To offset these rising costs, Agarwal said his company has implemented selective price increases. "While urban consumption showed signs of moderation, we have observed a noticeable uptick in rural demand. We remain optimistic that urban demand will return to its usual pace soon,” he said.
Shares of India’s third largest ethnic snacks manufacturer Bikaji Foods International tumbled 13 per cent in Friday's trade, as the company's Q3 margins came in below consensus estimates on high palm oil cost, even as revenue largely met analyst estimates.
The second-fastest growing company in the Indian organised snacks would be hosting an analyst call later today at 2 pm, where all eyes would be on the commentary on the impact of palm oil inflation on the company’s margins and whether any price hike is likely going ahead.
The stock fell 12.86 per cent to hit a low of Rs 638.10. The stock is down 14.36 per cent in 2025 so far.
Investors would keenly follow commentary on Bhujiya performance in comparison to other snacking options. They may seek know the reasons behind a lower market share in Bihar compared to other core states such as Rajasthan and Assam.
Nuvama said Bikaji Foods' Q3 revenue grew 14.5 per cent YoY and was marginally ahead of its estimates. Ebitda fell 26 per cent YoY and was below its and consensus estimates.
Overall volumes for Bikaji Foods grew 3 per cent YoY. Traditional snacks delivered a growth of 10.5 per cent YoY. Western snack sales grew mere 0.8 per cent YoY in Q3FY25 while packaged sweets grew 11.2 per cent YoY. Gross margins of 29 per cent declined 257 basis points YoY while EBITDA margins fell 425 basis points to 7.8 per cent.
Nuvama said it will revisit its estimates and target price post the earnings call. For now it maintained its ‘BUY’ on the stock.
Deepak Agarwal, Managing Director at Bikaji Foods International said his company was facing significant inflationary pressures and weak demand sentiment in the market. The
"Traditional Snacks category has been a major contributor, accounting for 62 per cent of our total revenue, followed by the Packaged Sweets category, which contributed 18 per cent. Regarding commodity prices, we continue to experience year-on-year inflation in key inputs such as edible oil, potatoes, packaging material and other essential commodities," Agarwal said.
To offset these rising costs, Agarwal said his company has implemented selective price increases. "While urban consumption showed signs of moderation, we have observed a noticeable uptick in rural demand. We remain optimistic that urban demand will return to its usual pace soon,” he said.